There are certain steps that individuals need to follow to Change the Car Insurance registration certificate. The new and old owners of the car need to treat the following as a crucial step in the purchasing process and not as an afterthought. The very fast and essential step which needs to be followed while changing the insurance is transferring the registration certificate. The main problem arises because numerous individuals out there certainly have no idea about transferring car insurance in the right way. The following step we are going to talk about precedes the proper transfer or changing of car insurance. Individuals following these steps when properly know how to change their car insurance.
Need to change the car insurance:
No individual is aware of the fact that car insurance is purchased to secure a car from future risks. It is even useless storing car insurance for a person with themselves while they no longer own a car. It could even be helpful for the new owner if the insurance gets transferred to their name. It is even essential for motor car owners to transfer the insurance to their name when they purchase a second-hand vehicle.
We are going to mention two main reasons why individuals should transfer car insurance policies. They are:
Avoiding certain kinds of future liabilities:
It is essential for a second-hand car owner to get the present insurance policy transferred to his name for the car to avoid any issues or future liabilities. The previous car owners need to keep in mind certain things. Suppose the car you sell to the second person has met with an accident resulting in liabilities with the third party. In that case, the owners won’t be able to file any third-party claims to the insurance because they didn’t get the insurance changed to their name. In such cases, you will have to pay the third-party liabilities on your own.
In the same way, if the car you own is sold to someone, you need to change the existing motor vehicle insurance policy to the new owner of the car. If certain steps are not followed, the old owner will have to be responsible for the liability caused by the new owner of the car as they are the policyholder of the car sold.
No claim bonus retaining policy:
For every claim-free policy year, the individuals have no claim bonus, which further helps them gain a discount on the premium of their car insurance renewal. When the previous owner sells his car, they need to get the NCB they have earned; transferred to the new owner’s name so that the new owner can avail of the premium discount on the renewal of the insurance policy of the new car. In order to do the following, and the owners need to acquire the NCB certificate from the motor insurance company after providing them all the necessary information about the sale of the car. The owners cannot acquire the NCB certificate without transferring the ongoing car insurance policy to the car’s new owner. In order to change car insurance, there are certain things that individuals need to keep in mind.
Transfer process of car insurance:
Wants to new owner purchase a car, the policy of the previous owner is not considered valid. On the basis of the Insurance Regulatory and Development Authority, in case the owner has to file the motor insurance claim, the address and the name on the insurance documents and have to match that with the registration in order to change car insurance.
For the changing of car insurance policy, the following documents are necessary:
- Old policy document
- Renewed copy of the registration form
- Renewed form of application
- NOC from the old policyholder
- No claim bonus
- Inspection report